The Ministry of Heavy Industries (MHI) is reportedly considering the removal of Rajesh Exports from the Production-Linked Incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage. This development follows an interim order by the Securities and Exchange Board of India (SEBI), which flagged alleged financial irregularities totaling ₹15.15 lakh crore at the Bengaluru-based company.
SEBI's 109-page ex parte order, issued on June 3, alleges that Rajesh Exports significantly overstated its revenues between fiscal years 2021 and 2025. According to the regulator, approximately 99.8 percent of the revenues reported by the company's subsidiaries during this period were materially misrepresented. The allegations also include instances of fund diversion, opaque related-party transactions, and disclosure lapses involving two entities linked to Rajesh Exports' lithium-ion cell business: Elest Pvt Ltd and ACC Energy Storage Pvt Ltd.
Regulatory Actions and Ministry Review
In response to these findings, SEBI has taken interim measures, including barring promoter and Chairman Rajesh Mehta from engaging in the buying, selling, or dealing of the company's securities until further proceedings are concluded. Additionally, the market regulator has mandated a fresh forensic audit of Rajesh Exports' financial records.
Sources close to the MHI indicate a strong internal sentiment favoring the exclusion of Rajesh Exports from the crucial PLI scheme. The ministry, which oversees the ACC battery storage incentive program, is currently reviewing SEBI's interim order to determine its next steps. The matter is expected to be presented to Heavy Industries Minister H D Kumaraswamy for a final decision.
Company Response and Future Outlook
Despite the grave allegations, Chairman Rajesh Mehta and Rajesh Exports have publicly denied SEBI's claims. They have stated their commitment to cooperating fully with the ongoing investigation. The outcome of the MHI's review and the subsequent actions by SEBI will significantly impact Rajesh Exports' participation in the government's strategic initiatives for battery manufacturing and its standing in the market.